Perspective Therapeutics Announces Pricing of $60.0 Million Public Offering And $20.8 Million Private Placement

Rhea-AI Summary

Perspective Therapeutics, Inc. announced the pricing of an underwritten public offering of 132,075,218 shares of its common stock at a public offering price of $0.37 per share and pre-funded warrants to purchase 30,086,944 shares of its common stock at a price of $0.369 per pre-funded warrant. The aggregate gross proceeds from this public offering are expected to be approximately $60.0 million. In addition, Perspective has agreed to sell 56,342,355 shares of its common stock to Lantheus Alpha Therapy, LLC at a price per share equal to the public offering price, for total gross proceeds of approximately $20.8 million. The aggregate gross proceeds from the public offering and the concurrent private placement are expected to be approximately $80.8 million.

Insights

Financial Analyst

The recent public offering and concurrent private placement by Perspective Therapeutics, Inc. represents a significant capital infusion for the company, totaling an expected aggregate gross proceeds of approximately $80.8 million. The pricing of shares at $0.37, along with pre-funded warrants, suggests an aggressive funding strategy aimed at bolstering the company's financial position in the short term. The capital raised is likely earmarked for further development of their radiopharmaceutical treatments, which could accelerate clinical trials or expand research and development efforts.

Investors should note the potential dilution effect due to the increase in the number of shares. However, the presence of institutional interest, as indicated by the private placement with Lantheus Alpha Therapy, LLC, may signal confidence in Perspective's long-term prospects. This capital raise could potentially enhance the company's valuation by enabling it to achieve key milestones, but it also increases the financial risk should the company fail to deliver on its clinical promises.

Market Research Analyst

Radiopharmaceuticals are a growing segment within the oncology market, offering targeted therapy with the potential for better efficacy and fewer side effects compared to traditional treatments. Perspective Therapeutics' focus on this niche could position it advantageously if its treatments prove successful. The market response to this offering will depend on the perceived value of Perspective's pipeline and its ability to capitalize on the burgeoning radiopharmaceuticals market.

It is important to analyze the competitive landscape and the demand for new cancer treatments that Perspective's products may fulfill. The company's strategic collaborations, such as with Lantheus Alpha Therapy, LLC, could provide additional resources and expertise, potentially accelerating the path to market and adoption of their products.

Biotech Industry Analyst

Perspective Therapeutics' public offering and concurrent private placement are critical steps for funding its advanced treatment applications for cancers. This move highlights the capital-intensive nature of the biotech industry, especially for companies in the clinical stages of developing new therapies. The pricing strategy for the shares and warrants, as well as the option granted to underwriters, reflects the company's need to balance immediate funding requirements with investor incentives.

The success of this capital raise will be instrumental in allowing Perspective to maintain its research momentum and could be a determinant of its future market share within the radiopharmaceutical space. Stakeholders should monitor the subsequent deployment of the raised funds into the company's research and development activities, as well as any strategic partnerships that may emerge as a result of this financial maneuver.

SEATTLE, Jan. 18, 2024 (GLOBE NEWSWIRE) --  Perspective Therapeutics, Inc. (“Perspective” or the “Company”) (NYSE AMERICAN: CATX), a radiopharmaceutical company that is pioneering advanced treatment applications for cancers throughout the body, today announced the pricing of an underwritten public offering of 132,075,218 shares of its common stock at a public offering price of $0.37 per share and, to certain investors in lieu of common stock, pre-funded warrants to purchase 30,086,944 shares of its common stock at a price of $0.369 per pre-funded warrant. The aggregate gross proceeds from this public offering are expected to be approximately $60.0 million, before deducting underwriting discounts and commissions and other offering expenses payable by Perspective in connection with the public offering. The purchase price per share of each pre-funded warrant represents the per share public offering price for the common stock, minus the $0.001 per share exercise price of such pre-funded warrant. All of the shares of common stock and pre-funded warrants to be sold in the public offering are being sold by Perspective. In addition, Perspective has granted the underwriters an option for a period of 30 days to purchase up to an additional 24,324,324 shares of Perspective’s common stock at the public offering price, less underwriting discounts and commissions.

Oppenheimer & Co. and B. Riley Securities are acting as joint book-running managers for the public offering.

Concurrent with the public offering, Perspective has agreed to sell, subject to the consummation of the public offering and satisfaction of other customary closing conditions, in a previously announced private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), 56,342,355 shares of its common stock to Lantheus Alpha Therapy, LLC at a price per share equal to the public offering price, for total gross proceeds of approximately $20.8 million.

The aggregate gross proceeds from the public offering and the concurrent private placement are expected to be approximately $80.8 million, before underwriting discounts and commissions and other offering expenses payable by Perspective, and without giving effect to any exercise by the underwriters of their option to purchase additional shares. The public offering and the concurrent private placement are expected to close on or about January 22, 2024, subject to the satisfaction of customary closing conditions.

Perspective intends to use the net proceeds that it will receive from the public offering and concurrent private placement for general corporate purposes, which may include research and development expenditures, preclinical study and clinical trial expenditures, manufacturing expenditures, commercialization expenditures, working capital, capital expenditures, acquisitions of new technologies, products or businesses and investments.

The securities described above in the public offering are being offered by Perspective pursuant to a shelf registration statement on Form S-3 (File No. 333-275638) initially filed with the Securities and Exchange Commission (the “SEC”) on November 17, 2023 and declared effective by the SEC on December 14, 2023.

The securities in the public offering are being offered by means of a prospectus supplement and accompanying prospectus relating to the public offering that form a part of the registration statement. A preliminary prospectus supplement relating to the public offering was filed with the SEC on January 17, 2024 and is available on the SEC’s website at www.sec.gov. The final prospectus supplement relating to and describing the terms of the public offering will be filed with the SEC and also will be available on the SEC’s website at www.sec.gov. Before investing in the public offering, you should read each of the prospectus supplement and the accompanying prospectus relating to the public offering in their entirety as well as the other documents that Perspective has filed with the SEC that are incorporated by reference in the prospectus supplement and the accompanying prospectus relating to the public offering, which provide more information about Perspective and the public offering. Copies of the final prospectus supplement, when available, and accompanying prospectus relating to the public offering may be obtained from Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, or by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com, or from B. Riley Securities, Inc., Attention: Prospectus Department, 1300 17th Street North, Suite 1300, Arlington, Virginia 22209, Phone: (703) 312-9580, Email: prospectuses@brileyfin.com.

The shares to be sold in the concurrent private placement have not been registered under the Securities Act, or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Perspective Therapeutics, Inc.

Perspective Therapeutics, Inc., is a radiopharmaceutical company that is pioneering advanced treatment applications for cancers throughout the body. The Company has a proprietary technology that utilizes the alpha emitting isotope Lead-212 to deliver powerful radiation specifically to cancer cells via specialized targeting peptides. The Company is also developing complementary imaging diagnostics that incorporate the same targeting peptides which provide the opportunity to personalize treatment and optimize patient outcomes. This “theranostic” approach enables the ability to see the specific tumor and then treat it to potentially improve efficacy and minimize toxicity associated with many other types of cancer treatments.

The Company’s melanoma (VMT01) and neuroendocrine tumor (VMT-α-NET) programs have entered Phase 1/2a imaging and therapy trials for the treatment of metastatic melanoma and neuroendocrine tumors at several leading academic institutions in the United States. The Company has also developed a proprietary Lead-212 generator to secure key isotopes for clinical trial and commercial operations.

SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION ACT OF 1995: To the extent any statements made in this press release deal with information that is not historical, these are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding the timing of the closing of the public offering and concurrent private placement, as well as the anticipated use of proceeds for the public offering and concurrent private placement and other statements identified by words such as “will,” “potential,” “could,” “can,” “believe,” “intends,” “continue,” “plans,” “expects,” “anticipates,” “estimates,” “may,” other words of similar meaning or the use of future dates. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause Perspective’s actual results to be materially different than those expressed in or implied by Perspective’s forward-looking statements. For Perspective, this includes satisfaction of the customary closing conditions of the public offering and concurrent private placement, delays in obtaining required stock exchange or other regulatory approvals, stock price volatility and uncertainties relating to the financial markets, the medical community and the global economy, and the impact of instability in general business and economic conditions, including changes in inflation, interest rates and the labor market. More detailed information on these and additional factors that could affect Perspective’s actual results are described in Perspective’s filings with the SEC, including its Transition Report on Form 10-KT for the transition period ended December 31, 2022, as revised or supplemented by its Quarterly Reports on Form 10-Q and other documents filed with the SEC. All forward-looking statements in this news release speak only as of the date of this news release. Perspective undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

FAQ

What is the public offering price of Perspective's common stock?

The public offering price of Perspective's common stock is $0.37 per share.

How many shares were offered in the public offering?

132,075,218 shares of Perspective's common stock were offered in the public offering.

What is the total gross proceeds from the public offering and the concurrent private placement?

The total gross proceeds from the public offering and the concurrent private placement are expected to be approximately $80.8 million.

Who are the joint book-running managers for the public offering?

Oppenheimer & Co. and B. Riley Securities are acting as joint book-running managers for the public offering.

To whom did Perspective agree to sell shares in the concurrent private placement?

Perspective agreed to sell 56,342,355 shares of its common stock to Lantheus Alpha Therapy, LLC in the concurrent private placement.